KPI (key performance indicator)
A KPI (key performance indicator) is a measurable number that shows whether a person, team or business is moving toward an agreed goal.
What it is
Every business can measure dozens of numbers. A KPI is the few that management decided to watch closely because they reflect what really matters. For a sales rep it might be revenue and conversion, for a support agent first contact resolution and quality score, for a collection team the amount returned and the share of kept payment promises.
How it looks in practice
A good KPI has a clear formula, a source of data, a period, a target and an owner. An illustrative example: “Share of overdue clients who made a payment within 30 days, counted monthly from the payment records, target 40%, owner: head of the early collection team.”
KPIs are often combined into a small set with weights, for example revenue 50%, conversion 30%, quality 20%, and linked to the variable part of pay.
Why it matters
KPIs turn goals into everyday behaviour. People do what is measured, especially when pay depends on it. A well-chosen set aligns the team, makes reviews fair and shows the manager early when something drifts.
The typical mistake
Measuring what is easy instead of what matters, and rewarding volume without quality. A team paid for the number of messages will send many messages. A team paid only for speed will close chats too early. Another mistake is having too many KPIs, so nobody knows what is important. Keep three to five per role, pair every quantity metric with a quality one, make the calculation transparent, and review the set when the business goals change.
More in Signals
- Call center KPIs for messaging apps: what to measure when agents type instead of talkIn messaging apps, classic call center KPIs change meaning: average handle time loses weight, while first response time, service level, missed conversations and resolution in a single conversation move to the front. New metrics appear that calls never had: concurrent conversations and promises kept. Measure them in working hours and together, never one at a time.
- Sales rep KPIs in chat: what to measure and what only gets in the wayMeasure what is tied to money: time to first reply, abandoned conversations, the share that ends in an agreement, promises kept and revenue per conversation. The number of messages sent and time online say nothing about the work. Metrics are for a conversation with a person, not for punishment, otherwise the team starts playing the number.